Financial Sector Conduct Authority (FSCA) has received 383 crypto asset service provider (CASP) applications, with only five declined. The licensing process for new and existing CASP applications commenced on 1 June 2023, and existing institutions were given until 30 November 2023 to submit their license applications.
Issuing of CASP licensesFSCA says they had approved 63 license applications by 30 June 2024, which brought the total number of licensed CASPs in South Africa to 138. Out of the 383 applications which were received by FSCA, 80 applications were withdrawn by applicants following engagements with the FSCA on the appropriateness of their respective business and operating models. The remaining applications continue to be under consideration.
Reasons for declined applicationsFSCA says license applications were declined because applicants failed to meet the applicable fit and proper requirements under the Financial Advisory and Intermediary Services (FAIS) Act. Some of the requirements listed by FSCA are:
Operational ability requirements: failure to provide clear and comprehensive business plans and business model descriptions outlining crypto asset activities and
Competency requirements: failure or inability to demonstrate the requisite knowledge and practical experience pertaining to crypto assets.
